International Journal of Engineering Inventions e-ISSN: 2278-7461, p-ISSN: 2319-6491 Volume 3, Issue 12 (July 2014) PP: 34-40
Positive perception of Weather Index Based Insurance scheme in Karnataka –A case study of Cotton crop Mahadevaswamy.M1, Dr. G.Kotreshwar2 1
Mahadevaswamy .M Research scholar, DOS in Commerce, Manasa Gangotri, University of Mysore, Mysore & Guest faculty, University Evening College, University of Mysore, Mysore 2 Professor. DOS in Commerce, Manasa Gangotri, University of Mysore, Mysore
Abstract: Lot of factors, ranging from climate variability, frequent natural disasters, uncertainties in yields and prices, weak rural infrastructure, imperfect markets and lack of financial services including limited span and design of risk mitigation instruments such as credit and insurance have affected Indian agriculture which in turn has affected the farmer’s livelihood and incomes in India. In order to avoid the agriculture risks government and private insurance company are introducing varieties of insurance scheme. These schemes will reduce the financial loss occurred through weather vagaries in agriculture sectors. In the present day’s insurance can be divided into two categories namely Crop insurance and weather index based insurance. The present article mainly focuses on impact assessment of weather index based insurance in Karnataka. The primary data was collected through random questionnaire and the secondary data regarding weather index based insurance of five districts namely Chitradurga, Dharwad, Shimog, Davangere and Tumkur were collected from Agriculture Insurance Company of India Limited. Comparative study was made between these data to know the impact of WIBI on cotton farmers. It was observed that cotton farmers in Chitradurga, Dharwad, Shimog, and Davangere, districts show more positive perception than Tumkur district.
I. Introduction The agriculture sector of India has occupied almost 43 percent of India's geographical area. Agriculture is still the only largest contributor to India's GDP even after a decline in the agriculture share of India. Despite a diminishing share in the India's GDP, agriculture remains a key sector of the economy and continues to play a vital role in driving India's economic growth. About 60 percent of India's population lives in its villages and a majority of rural households depend on agriculture and related activities for their livelihood. The behavior of the summer monsoon has significant implications for the economy and livelihoods in India, particularly in the rural sector. Over 60% of cropped area in India is rainfed, and over 70% of the population depends upon the rural natural resource base for their livelihoods. Droughts and floods have deep impacts on rural households, and great budgetary implications for the government at district, state and national levels. Agricultural activities are exposed to controllable and uncontrollable risks. Controllable risks are typically pests, diseases, weeds, and seed material. Uncontrollable risks are rainfall — it‘s deficit, excess and distribution, extreme temperature conditions, hail incidences, extreme wind speeds, humidity variations etc. Controllable risks can be mitigated with the use of technology, effective monitoring and appropriate usage of inputs. However, the challenge lies in providing risk mitigation measures for uncontrollable risks. In such a case farmers have to depend on WIBI. This scheme is promising and is achieving its objectives by providing financial relief thereby reducing financial shock to farmers.
II. The Cotton Scenario Of Karnataka Karnataka occupies 5.54% of cotton crop area in the country in year 2011-12, with a contribution of 14.00 (in lakh bales of 170 kgs) of the production at the all-India level in the same year. Around 20% of its cotton land is reported to be under irrigated conditions. After Gujarat and Andhra Pradesh, Karnataka has the largest area under hybrid Cotton seed production in India. Karnataka is the first state in south India to produce hybrid cotton seeds for commercial cultivation. Cotton seed production began in Karnataka in early the 1970 years of by migrant farmers from Andhra Pradesh. Slowly local farmers also entered the seed production activity. Cotton is an important commercial crop which can be grown in all parts of Karnataka. It is mainly grown in Dharwad, Gadag, Haveri, Belgaum, Bellary, Bijapur, Shimoga, Chamarajnagar, Mysore, and Davanagere districts. In Karnataka, traditional cotton growing areas included Dharwad, Bijapur, Chitradurg, Bellary, Raichur districts. However, there is a spectacular shift in cotton growing areas in Karnataka. From traditional areas, it has spread to many non-traditional districts like Mysore, Shimoga, Chamarajnagar, Tumkur, Davanagere.
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